On Monday I had expected some selling as explained in my market direction comments from Sunday which you can read here. In the morning then the market opened lower because of the huge drop in gold but the market seemed to stabilize and I waited for the first overbought signal from the Ultimate Oscillator to buy Spy Put Options. As regular readers know, the Spy Put Options is my method of hedging during market downturns. At the first little rally the Ultimate oscillator flashed the oversold signal and I bought 60 of the / Read More

My Spy Put Options hedge works well on days like today. Often though the Spy Put Options will fail unless I am aware that sometimes the 5 minute market direction chart on the S&P 500 is not going to tell me the whole story. Today’s successful Spy Put Options trade relied on my knowing that I needed both the 5 minute and 1 minute S&P 500 charts. Let’s take a look to understand how to use these two charts. S&P 500 Market Direction Open For the Spy Put Options trade to be successful / Read More

I have been receiving a lot of emails from investors who have been accumulating Spy Put Options as they wait for what their perceive as the “inevitable crash” as one investor wrote me. I believe accumulating Spy Put Options every time the market moves lower is a mistake and could hurt portfolios. First, if you are convinced that the markets are going to crash then you want to buy Spy Put Options every time the market rises. That way you have at least some fighting chance to maybe make a bit of money / Read More

Regular readers of my website know that the Spy Put Options are my number one choice for profiting from market direction downturns. Trading within the SPY PUT Options helps to hedge my portfolio against large losses as it builds a cash cushion that grows with each successful trade. This cushion protects my entire portfolio through every kind of stock market gyrations imaginable. But the bigger SPY PUT profits come when market volatility shoots up such as during bear markets and panics. Friday Dec 28 was a good example as on Friday I did / Read More

The great thing about using market timing technical indicators after years of use brings with it a certain knowledge derived from experience. My market timing technical indicators yesterday indicated further selling. Indeed the Fast Stochastic showed “down” period. Slow Stochastic also indicated lower but not to the degree of the Fast Stochastic. MACD (Moving Average Convergence / Divergence) on the other hand, gave a market down signal on all three stock markets on September 25 and 26 and has never wavered since. An investor who had bought the DXD on September 26 would / Read More

The SPDR 500 ETF as regular readers know is my preferred method of hedging my portfolio through using SPY PUT Options. There are certainly lots of other methods particularly with the Ultra Short products like SDS and TZA to profit in a downturn. I use the SPY PUT options because they are very liquid and after studying them back in 1993 when they first arrived on the scene and paper trading them for almost a year I found that not only was the likelihood of profit very good, but the level of losses / Read More